Multiple closely watched mortgage rates ticked downward today. The average rates on 30-year fixed and 15-year fixed mortgages both were down. Meanwhile, the average rate on 5/1 adjustable-rate mortgages also slid lower.
Mortgage rates are in a constant state of flux, but they continue to represent a bargain compared to rates before the Great Recession. If you’re in the market for a mortgage, it may be a great time to lock in a rate. Just be sure to shop around.
30-year fixed mortgages
The average rate you’ll pay for a 30-year fixed mortgage is 3.95 percent, down 6 basis points since the same time last week. A month ago, the average rate on a 30-year fixed mortgage was higher, at 4.11 percent.
At the current average rate, you’ll pay $474.54 per month in principal and interest for every $100,000 you borrow. That’s a decline of $3.45 from last week.
15-year fixed mortgages
The average 15-year fixed-mortgage rate is 3.13 percent, down 6 basis points since the same time last week.
Monthly payments on a 15-year fixed mortgage at that rate will cost around $697 per $100,000 borrowed. The bigger payment may be a little more difficult to find room for in your monthly budget than a 30-year mortgage payment would, but it comes with some big advantages: You’ll come out several thousand dollars ahead over the life of the loan in total interest paid and build equity much more rapidly.
The average rate on a 5/1 ARM is 3.13 percent, falling 4 basis points from a week ago.
These types of loans are best for those who expect to sell or refinance before the first or second adjustment. Rates could be substantially higher when the loan first adjusts, and thereafter.
Monthly payments on a 5/1 ARM at 3.13 percent would cost about $429 for each $100,000 borrowed over the initial five years, but could increase by hundreds of dollars afterward, depending on the loan’s terms.